Batista Says Brazilian Group Restructured Debt After Market Rout

By Juan Pablo Spinetto -
Jun 13, 2013

Billionaire Eike Batista’s EBX Group
Co. said it restructured debt after bonds and stocks of his
interlinked group of commodities companies fell to a record.

The Brazilian holding company for most of Batista’s assets
now holds only long-dated maturities after concluding the
restructuring, the billionaire said in an e-mailed statement
today, without giving details. The restructuring “is clear
evidence of EBX’s high level of commitment toward its
obligations with stakeholders,” he said.

Batista is selling assets, reducing staff and trimming the
scope of projects as his startups including oil producer OGX
Petroleo & Gas Participacoes SA accumulate losses. OGX dropped
to a record low yesterday after the billionaire disclosed he
sold shares of its flagship oil unit for the first time.

The sale represents a “minimum adjustment” to EBX
portfolio related to extension of debt profile and reduction of
costs, the billionaire said in today’s statement, adding that he
doesn’t expect to sell more shares on the market. EBX will
continue pursuing “strategic partnerships,” he said.

Last month, Batista raised 1.4 billion reais by selling a
stake in power-generation venture MPX Energia SA (MPXE3) to Germany’s
EON SE. Separately, OGX sold an $850 million stake in an oil
field to Malaysia’s Petroliam Nasional Bhd.

OGX’s bonds due in 2018 slumped 8.5 cents to 40 cents on
the dollar, the lowest on record, today after an O Estado de S.
Paulo columnist speculated that Batista may consider
restructuring debt. Shares of the company gained 1 percent to
1.05 reais in Sao Paulo, rebounding from yesterday’s all-time
low. EBX’s press department declined to give details of the
amount of debt restructured.